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Will the Following Be Included in the Domestic Product of India? Give Reasons for Your Answer. Profit Earned by Foreign Companies in India - Economics

Will the following be included in the domestic product of India? Give reasons for your answer.

Profit earned by foreign companies in India

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Solution

Profit earned by foreign companies is included in the estimation of domestic income as they are within the domestic territory of the country.

Concept: Concept of Balance of Payments Account
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2016-2017 (March) All India Set 1
Q 28.2
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2016-2017 (March) All India Set 1 (with solutions)
Q 28.2 | 6 marks
2016-2017 (March) All India Set 3 (with solutions)
Q 28.2 | 6 marks
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